Technology management practices and innovation: Empirical evidence from medium- and large-scale manufacturing firms in Ethiopia

Abstract

In order to investigate empirically the effects of technology management on firm innovation, this paper considers the antecedents and multidimensional views of technology management mechanisms on innovation performance in medium- and large-scale manufacturing firms in a developing country, namely Ethiopia. Using simple random sampling, a total of 200 firms were chosen for this study to obtain responses from respondents. Four hypotheses were proposed for testing. Structural equation modelling and cross-sectional design were used to analyze the data using the LISREL 8.80 SIMPLIS program software tool. This study finds technology transfer and technology acquisition have significant positive effects on process innovation, product innovation, and method innovation. Technology process has a significant positive effect on process and method innovation. Technology absorption has a significant positive effect on product innovation. The major implication of this study is that technology management, coupled with appropriate technology management policies and strategies, is an appropriate resource to be used in the organization to enhance firm performance, particularly innovation and creativity. The paper contributes to the literature in that, unlike previous studies that are based on one aspect of technology management practices, this study examined the effects of each different type of technology management dimension on firms’ innovation. Thus, this study helps to gain further insights into the effects of technology management practices on firm innovation.